- Bitcoin cash price started a major decline below the $550 zone against the US Dollar.
- The price is now trading below the $520 zone and the 55 simple moving average (4-hours).
- There was a break above a key contracting triangle with resistance near $500 on the 4-hours chart of the BCH/USD pair (data feed from Coinbase).
- The pair could continue to rise towards the main $550 and $555 resistance levels in the near term.
Bitcoin cash price is eyeing recovery above $500 against the US Dollar, similar to bitcoin. BCH/USD could resume its decline if it fails to clear $550.
Bitcoin Cash Price Analysis
Bitcoin cash price started a major decline from well above $550. BCH broke the $500 support level and the 55 simple moving average (4-hours) to move into a bearish zone.
It even traded below $480 and spiked below $475. A low was formed near $471 before the price started an upside correction. There was a break above the 23.6% Fib retracement level of the downward move from the $556 swing high to $471 low.
There was also a break above a key contracting triangle with resistance near $500 on the 4-hours chart of the BCH/USD pair. The pair is now trading below the $520 zone and the 55 simple moving average (4-hours).
An immediate resistance is near the $515 level. It is close to the 50% Fib retracement level of the downward move from the $556 swing high to $471 low. The next major resistance could be $540. The main breakout zone is near the $550 level.
A clear break above $550 and $555 might trigger a sharp upward move. On the downside, an initial support is near the $495 level. A downside break below the $495 support zone could open the doors for a fresh decline. The next major support is near the $470 level, below which the bears might aim a test of $420.
Looking at the chart, bitcoin cash price is now trading below the $520 zone and the 55 simple moving average (4-hours). Overall, the price could continue to rise towards the main $550 and $555 resistance levels in the near term.
Technical indicators
4 hours MACD – The MACD for BCH/USD is slowly gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BCH/USD is now above the 50 level.
Key Support Levels – $495 and $470.
Key Resistance Levels – $515 and $550.
